We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Johnson Controls Q1 Earnings & Revenues Top Estimates, Increase Y/Y
Read MoreHide Full Article
Key Takeaways
JCI reported Q1 adjusted EPS of 89 cents, beating estimates and jumping 39% year over year.
JCI revenues rose 7% to $5.80B, with organic growth driven by HVAC, controls and services strength.
JCI saw EBITA growth across Americas, EMEA and APAC, supported by SG&A reductions and leverage.
Johnson Controls International plc (JCI - Free Report) reported first-quarter fiscal 2026 (ended December 2025) adjusted earnings of 89 cents per share, which beat the Zacks Consensus Estimate of 84 cents. The bottom line increased 39% year over year.
Total revenues (continuing operations) of $5.80 billion surpassed the consensus estimate of $5.66 billion in the quarter. The top line increased 7% year over year, whereas organic revenues increased 6%.
Q1 Segmental Results
Effective from the third quarter of fiscal 2025, the company started reporting under three segments, namely Americas, EMEA and APAC.
Americas: Revenues were $3.84 billion, up 6% year over year. Organic sales also increased 6%, driven by the strong performance of the applied heating, ventilation and air conditioning (HVAC) and controls businesses. Adjusted EBITA increased 7% year over year to $632 million.
EMEA: Revenues totaled $1.26 billion, up 9% year over year. Organic sales rose 4% due to strong growth in the service business. Adjusted EBITA was $164 million, up 21% year over year.
APAC: Revenues increased 8% to $693 million. Sales rose 8% organically, due to strength in Products and Systems. Adjusted EBITA was $117 million, up 30% year over year.
Johnson Controls International plc Price, Consensus and EPS Surprise
In the fiscal first quarter, Johnson Controls’ cost of sales increased 6.4% year over year to approximately $3.72 billion. Gross profit increased 7.7% year over year to $2.07 billion and the margin rose 30 basis points (bps) to 35.8%. Selling, general and administrative expenses were $1.22 billion, down 12.7% year over year.
Financial Position
Johnson Controls had cash and cash equivalents of $552 million as of Dec. 31, 2025, compared with $379 million at the end of fiscal 2025 (ended Sept. 30, 2025). Long-term debt was $8.7 billion compared with $8.59 billion at the end of fiscal 2025.
In the first three months of fiscal 2026, the company generated net cash of $611 million from operating activities compared with $249 million in the year-ago period. It reported a free cash flow (on an adjusted basis) of $428 million in the same period compared with $603 million in the year-ago period.
The company paid dividends worth $245 million and did not repurchase any shares in the fiscal first quarter.
Q2 Guidance
Johnson Controls anticipates organic revenue growth of approximately 5% from the year-ago level. Operating leverage is estimated to be approximately 45%. It expects adjusted earnings to be about $1.11 per share.
FY26 Guidance
Johnson Controls anticipates organic revenue growth to be in the mid-single-digit range from the prior-year level. Operating leverage is expected to be about 50%. It expects adjusted earnings per share to be approximately $4.70. It expects adjusted free cash flow conversion of about 100%.
JCI’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are discussed below:
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. Flowserve’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has been stable.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Johnson Controls Q1 Earnings & Revenues Top Estimates, Increase Y/Y
Key Takeaways
Johnson Controls International plc (JCI - Free Report) reported first-quarter fiscal 2026 (ended December 2025) adjusted earnings of 89 cents per share, which beat the Zacks Consensus Estimate of 84 cents. The bottom line increased 39% year over year.
Total revenues (continuing operations) of $5.80 billion surpassed the consensus estimate of $5.66 billion in the quarter. The top line increased 7% year over year, whereas organic revenues increased 6%.
Q1 Segmental Results
Effective from the third quarter of fiscal 2025, the company started reporting under three segments, namely Americas, EMEA and APAC.
Americas: Revenues were $3.84 billion, up 6% year over year. Organic sales also increased 6%, driven by the strong performance of the applied heating, ventilation and air conditioning (HVAC) and controls businesses. Adjusted EBITA increased 7% year over year to $632 million.
EMEA: Revenues totaled $1.26 billion, up 9% year over year. Organic sales rose 4% due to strong growth in the service business. Adjusted EBITA was $164 million, up 21% year over year.
APAC: Revenues increased 8% to $693 million. Sales rose 8% organically, due to strength in Products and Systems. Adjusted EBITA was $117 million, up 30% year over year.
Johnson Controls International plc Price, Consensus and EPS Surprise
Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc Quote
Margin Profile
In the fiscal first quarter, Johnson Controls’ cost of sales increased 6.4% year over year to approximately $3.72 billion. Gross profit increased 7.7% year over year to $2.07 billion and the margin rose 30 basis points (bps) to 35.8%. Selling, general and administrative expenses were $1.22 billion, down 12.7% year over year.
Financial Position
Johnson Controls had cash and cash equivalents of $552 million as of Dec. 31, 2025, compared with $379 million at the end of fiscal 2025 (ended Sept. 30, 2025). Long-term debt was $8.7 billion compared with $8.59 billion at the end of fiscal 2025.
In the first three months of fiscal 2026, the company generated net cash of $611 million from operating activities compared with $249 million in the year-ago period. It reported a free cash flow (on an adjusted basis) of $428 million in the same period compared with $603 million in the year-ago period.
The company paid dividends worth $245 million and did not repurchase any shares in the fiscal first quarter.
Q2 Guidance
Johnson Controls anticipates organic revenue growth of approximately 5% from the year-ago level. Operating leverage is estimated to be approximately 45%. It expects adjusted earnings to be about $1.11 per share.
FY26 Guidance
Johnson Controls anticipates organic revenue growth to be in the mid-single-digit range from the prior-year level. Operating leverage is expected to be about 50%. It expects adjusted earnings per share to be approximately $4.70. It expects adjusted free cash flow conversion of about 100%.
JCI’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the same space are discussed below:
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank of 2. Flowserve’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has been stable.